|This article is of interest to the following WikiProjects:|
I have expanded the opening explination and this is not complete paragraph to make it more self-contained as an introduction to the concept. This has meant including definitions of parent and group directly on the page. It seems impossible to discuss subsidiaries without reference to them, and to be unnecessary to require the reader to go elsewhere to find what they mean.
I have also added, for the general reader, some examples of why subsidiaries arise in practice. I think there would be value too in a section that explains why the definition is important in terms of accounting, liability and taxation.
The control section as it stands has become confused. The most useful reference for the test, in an international context, might be the IASB and in particular IAS 27 "Consolidated and Separate Financial Statements", unless someone knows a better source.
I am of the view that the material on US railroad subsidiaries is too specific for this article and should either be used as an illustration of a more general point (the dormant subsidiary?) or be moved to a railroad home.utz
Why use a subsidiary
- I ended up getting access to this article but it wasn't very interesting. Other articles I've found: Is a Subsidiary in Your Future? Companies can benefit from important tax advantages and liability protections (2002) and Bringing reinsurance into the spotlight (2013). II | (t - c) 18:43, 16 December 2013 (UTC)
Confusion about subsidiary issue....
Needs Taxes and Profits Section
As someone who has just gotten employed by a subsidiary I decided to make my way here to find out more info about exactly what defines a "subsidiary." I think this article could definitely use some more information about taxes and profits apply to subsidiaries. Fatrb38 (talk) 17:29, 19 October 2010 (UTC)